Commercial Real Estate - South Florida

Trust, privacy concerns holding back consumers from AI shopping tool adoption

The adoption of AI-driven shopping tools is currently hindered by a significant gap in consumer trust and privacy concerns. While interest in AI is high, only 39% of Americans trust AI agents to handle everyday purchases, and even fewer (34%) are comfortable using them for larger items.

The report highlights a "privacy paradox": consumers want the convenience and personalization AI offers, but are deeply skeptical of how their data is used. Key barriers include:

• Transparency: A lack of clarity on how AI models process personal data.

• Accuracy: Fears that AI might make incorrect purchasing decisions or provide poor recommendations.

• Security: Concerns regarding data breaches and the potential for financial fraud.

For retailers to bridge this gap, the study suggests focusing on "Responsible AI"—demonstrating ethical data usage, providing clear opt-out options, and ensuring that the AI provides a tangible benefit that outweighs the perceived privacy risk.

• Read More

Retail sales to grow 4.4% in 2026; outlook tops average growth of past 10 years

The National Retail Federation forecast that retail sales in 2026 will grow 4.4% over 2025 to reach $5.6 trillion, exceeding the 3.6% average annual sales growth over the past 10 years excluding the pandemic period. The forecast, developed in partnership with Oxford Economics, notes that higher-income households will drive the majority of spending growth across retail categories, with consumer activity receiving a modest boost from tax refunds associated with the Working Families Tax Cut Act.  Although consumer sentiment is not expected to improve significantly and remains historically low, NRF emphasizes that sentiment has remained disconnected from actual spending patterns, with solid fundamentals including income growth, household balance sheets, and labor market stability expected to support consumer activity. While the forecast presents a stronger outlook than most recent projections, renewed tensions in the Middle East and trade policy challenges add uncertainty, though these geopolitical events were not factored into the current forecast and could trigger a revision if circumstances dictate. 

• Read More

Retailers report shrink levels down from pandemic highs

Multiple major retailers report that shrink levels have declined significantly and are returning to pre-pandemic levels, with industry experts calling it "a nonevent" compared to recent years. Target's shrink returned to pre-pandemic levels in early 2026, down from expectations that shrink would reduce 2022 profits by $600 million, with executives attributing improvements to team efforts and industry collaboration against retail theft. Loss prevention experts suggest the improvement stems primarily from inventory predictability and supply chain stability rather than dramatic drops in shoplifting, as the pandemic-era supply chain disruptions that caused excess inventory in 2022 have now stabilized. Industry consultant Brand Elverston estimates that shrink losses are likely split evenly between theft and operational breakdowns such as inventory management errors, challenging the long-held narrative that theft accounts for nearly 70% of losses. 

• Read More